Stardust Power Inc. (NASDAQ: SDST)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001831979
Market Cap 18.42 Mn
P/B -3.60
P/E -0.85
P/S 0.00
ROIC (Qtr) 438.94
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 304,666.00
Debt/Equity (Qtr) -0.06
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About

Stardust Power Inc. (SDST) operates in the energy sector, providing innovative solutions to meet the needs of various industries and businesses across the globe. The company's primary products and services include energy storage systems, renewable energy solutions, and energy efficiency technologies. These offerings enable the efficient and reliable generation, storage, and use of energy. Stardust Power Inc. generates revenue through its energy storage systems, which are designed to meet the needs of various industries, including renewable energy,...

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Investment thesis

Bull case

  • Healthy cash reserves of 1.59M provide 5.20x coverage of short-term debt 304666, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.04M provides 32.95x coverage of total debt 304666, indicating robust asset backing and low credit risk.
  • Retained earnings of (64.59M) represent substantial 12.62x of equity (5.12M), indicating strong internal capital generation.
  • Cash reserves of 1.59M provide solid 1.99x coverage of other non-current liabilities 796182, indicating strong liquidity.

Bear case

  • The company's operating cash flow of (7.75M) shows concerning coverage of stock compensation expenses of 8.80M, with a -0.88 ratio indicating potential earnings quality issues.
  • Free cash flow of (13.24M) provides weak coverage of capital expenditures of 5.48M, with a -2.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (21.32M) show weak coverage of depreciation charges of 3066, with a -6955.26 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (13.24M) represents just -38.28x of debt issuance 345870, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Cash position of 1.59M provides weak coverage of payables of 9.25M, which is 0.17x, indicating potential working capital stress and supplier relationship risks.

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.57 3.49
EV to Cash from Ops. EV/CFO -2.04 9.10
EV to Debt EV to Debt 51.90 113.17
EV to EBIT EV/EBIT -0.74 -17.64
EV to EBITDA EV/EBITDA -0.83 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -1.19 39.13
EV to Market Cap EV to Market Cap 0.86 2.59
EV to Revenue EV to Revenue 0.00 77.74
Price to Book Value [P/B] P/B -3.60 4.98
Price to Earnings [P/E] P/E -0.85 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) -98.25 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -573.52 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.13 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -40.86 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -55.83 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -40.86 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -42.18 8.52
EPS Growth (1y) % EPS 1y % (Qtr) -127.17 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -23.39 -66.58
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.11 3.50
Current Ratio Curr Ratio (Qtr) 0.17 5.07
Debt to Equity Ratio Debt/Equity (Qtr) -0.06 0.41
Interest Cover Ratio Int Coverage (Qtr) -98.25 -16.86
Times Interest Earned Times Interest Earned (Qtr) -98.25 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -1,947.23
EBIT Margin % EBIT Margin % 0.00 -2,051.19
EBT Margin % EBT Margin % 0.00 -2,170.94
Gross Margin % Gross Margin % 0.00 2.02
Net Profit Margin % Net Profit Margin % 0.00 -2,202.04